Chemical major LG Chem Ltd, an affiliate of South-Korea-headed conglomerate LG Corporation, and Enilive, a company directly controlled by Italy-headed oil and gas major Eni S.p.A., have announced that they have signed a joint venture (JV) agreement that aims to build a new biorefinery in South Korea.
The JV agreement builds on an announcement in September 2023 to explore the possibility of developing and operating a new biorefinery at LG Chem’s existing integrated petrochemical complex in Daesan, South Korea.
The aim is to complete the biorefinery by 2026 and to make it process approximately 400,000 tonnes of renewable bio-feedstocks annually using Eni’s Ecofining technology and produce multiple products including sustainable aviation fuel (SAF), renewable diesel (hydrotreated vegetable oil – HVO), and bio-naphtha.
Biofuel production is one of the main pillars of our strategy to contribute to reaching net zero emissions by 2050 also through the sale of increasingly decarbonized products to our clients. The biorefinery project we are working on together with LG Chem is a key element to expanding Enilive biorefining presence internationally, raising its capacity from the current 1.65 million tonnes per year to over 5 million tonnes per year by 2030 and increasing the optionality of SAF production to up to 2 million tonnes per year from 2030, said Claudio Descalzi, CEO at Eni.
LG Chem and Eni will combine expertise in this initiative. The final investment decision is expected in 2024.
This agreement holds significant meaning as it represents the collaboration and joint effort of global leading companies towards the common goal of ‘Net Zero’. LG Chem will actively support the successful execution of this project and, moving forward will solidify its position as a leading company in the eco-friendly plastic industry, achieving sustainable development and carbon neutrality as a true global entity, noted Shin Hak-cheol, CEO at LG Chem.
